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Feathers have been rustled this Friday morning as Scout announced their long-awaited vehicles, and how they aren’t going to use dealers to sell them. Plus, we talk about Farley’s Chinese EV revelation, how Tesla is finding new profit centers and why every car only comes in a shade of black or white.
Show Notes with links:
- After over two years of tight-lipped planning, Scout Motors has unveiled its direct-to-consumer approach for the Terra pickup and Traveler SUV, bypassing the traditional dealership network, and sparking strong reactions from U.S. auto dealers.
- The Terra pickup and Traveler SUV, unveiled as production-ready concepts, are aimed at ruggedness, repairability, and will feature an optional extended-range EV system.
- Sales will skip U.S. VW dealers, instead using a direct model with $100 refundable reservations available.
- Dealers expressed frustration, raising potential legal challenges over lack of communication.
- John Devlin of the Pennsylvania Automotive Association warns of “challenges” facing Scout in nearly every state, saying "Scout can’t expect dealers to sit by quietly. This approach will face serious pushback. My counterparts around the country are not just going to roll over,"
- Ford CEO Jim Farley recently shared insights from driving a Xiaomi SU7 sedan around Chicago, highlighting how far American automakers lag behind China’s highly integrated tech-automotive ecosystem, which is increasingly driven by consumer tech giants like Xiaomi and Huawei.
- Farley praised the Xiaomi SU7, calling it "fantastic" and noting Xiaomi’s ability to sell tens of thousands of units per month, with long waitlists.
- In China, brands like Xiaomi and Huawei seamlessly integrate their operating systems across vehicles and consumer electronics, offering an experience unmatched by Western brands.
- Despite Elon Musk’s past assurances that Tesla’s service and Supercharger network would not be profit centers, the company’s latest earnings reveal a notable surge in profits from these very areas, highlighting a strategic shift.
- Q3 2024 results show Tesla’s “services and others” profits grew to nearly $250 million, up 90% year-over-year and a significant chunk of an $800M annual gross profit increase.
- Once a spectrum of vivid hues, the color choices for America’s cars have dwindled over the past two decades, influenced by economic shifts and cultural trends.
- In 2005, over half of cars featured bold colors beyond black, white, silver, or gray; now, less than 20% do.
- Vibrant hues are increasingly reserved for luxury models; 12% of Chevys come in color, compared with 44% of Lamborghinis.
- Apple’s shift to sleek, minimalist design in 2003 popularized monochrome aesthetics that spread to the auto industry.
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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